SBI’s NII surged 12.27% to ₹39,500 cr, while NIM stood at 3.43, down 12 bps YoY
Public lender State Bank of India's shares opened in the positive territory on Monday in line with the broader market after the bank reported 8.03% year-on-year growth in net profit ₹14,330 crore for the July-September quarter of 2023-24.
The share of the banking heavyweight opened a gap up at ₹583 on the BSE, taking the bank's m-cap to ₹5,14,593.12 crore. At the filing of the report, though, the stock was trading 0.30% down at ₹576.4.
The country's largest lender’s operating profit for the said quarter grew 8.07% on a year-on-year basis to ₹19,417 crore. The ROA and ROE for the half year stood at 1.10% and 22.57%, respectively.
The net interest income for the quarter surged 12.27% to ₹39,500 crore, while NIM (net interest margin) was 3.43, down 12 bps as compared to 3.55 in the year-ago period.
SBI's net profit for the previous quarter (Q) stood at ₹16,884 crore, up 15.13% from Q2 FY24 profit.
In terms of the balance sheet, the credit growth of the bank surged 12.39% year-on-year with domestic advances growing 13.21% year-on-year, while foreign office advances surged 8.11% on a year-on-year basis.
The domestic advances, says SBI, were driven by SME advances (up 22.75%), followed by retail personal advances that surged 15.68% YoY.
Agri and corporate loans also recorded 14.7% and 6.62%, respectively. While bank deposits surged 11.91% year-on-year, of which CASA deposits surged 4.91%. The bank's CASA ratio stood at 41.88% as of September 30, 2023.
Regarding asset quality, SBI's gross NPA ratio improved 97 bps year-on-year to 2.55%, while the net NPA ration improved 16 bps YoY to 0.64%.
Capital Adequacy Ratio (CAR) at the end of Q2 FY24 improved by 77 bps YoY and stood at 14.28%.
The lender says it acquired 61% of the total accounts and 39% of retail asset accounts via YONO mobile app. The share of alternate channels in total transactions increased from 96.8% in H1 FY23 to 97.7% in H1 FY24.
The bank last week said it raised ₹10,000 crore through bonds for the current financial year. The funds were raised at a coupon rate of 7.81% through its first Basel III compliant Tier 2 bond issued for 15 years tenor, with the first call option after 10 years.
In September this year, SBI raised ₹10,000 crore at a coupon rate of 7.49% through its fourth infrastructure bond issuance, which will be used for enhancing long-term resources for funding infrastructure and affordable housing segment. Prior to this, the bank raised long-term bonds of ₹10,000 crores on August 1, 2023, at a spread of 13 basis points (bps) over corresponding FBIL G-Sec par curve.
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